The impact of monetary and fiscal policy on FinTech firms during the crisis

Journal article

Kakhkharov, Jakhongir, Bianchi, Robert J. and Akhtaruzzaman, Md. (2024). The impact of monetary and fiscal policy on FinTech firms during the crisis. International Review of Economics and Finance. 96(Part B), p. Article 103556. https://doi.org/10.1016/j.iref.2024.103556
AuthorsKakhkharov, Jakhongir, Bianchi, Robert J. and Akhtaruzzaman, Md
Abstract

The U.S. government and Federal Reserve implemented rapid and substantial interventions during the global pandemic in 2020–2021. We examine the impact of the pandemic on FinTech firms and find that the effect varies based on the size and timing of the fiscal and monetary policy actions. The concurrent actions of both the Treasury and Federal Reserve were significant in stabilizing market conditions. The Fed's balance sheet expansion during the pandemic resulted in a positive impact on FinTech. FinTech subsectors such as exchanges and automatic trading, financial data, networks, processors, and business information reacted positively to the Fed's Quantitative Easing (QE) decisions. In contrast, other sub-sectors, such as asset management, internet banking, and specialty marketplace lending, were negatively impacted. These findings are crucial for regulatory bodies and policymakers, providing insights into the effects of current policies and predicting FinTech firms' responses in future crises. This analysis underscores the nuanced and sector-specific impacts of policy actions on FinTech during periods of crisis.

KeywordsFinTech; monetary policy; fiscal policy; crisis; financial contagion; COVID–19
Year2024
JournalInternational Review of Economics and Finance
Journal citation96 (Part B), p. Article 103556
PublisherElsevier Inc.
ISSN1059-0560
Digital Object Identifier (DOI)https://doi.org/10.1016/j.iref.2024.103556
Scopus EID2-s2.0-85204226870
Open accessPublished as ‘gold’ (paid) open access
Page range1-21
Publisher's version
License
File Access Level
Open
Output statusPublished
Publication dates
Online19 Sep 2024
Publication process dates
Accepted28 Aug 2024
Deposited14 Feb 2025
Additional information

© 2024 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).

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